What do I do if my car was repossessed and now they want money because they sold it for less than was owed? 10 Answers as of October 08, 2012No one EVER told me that the car would be auctioned or that I would be responsible for the difference. I've already taken the credit hit for the next 10 years. (I thought it was 7).
MatthewR. Schutz, Esq | Matthew R. Schutz
The lender can dispose of the vehicle in a commercially reasonable fashion. An auction would qualify. If you read your loan agreement, you will find you are responsible for any shortfall. You can try and negotiate with the lender, fight it out in the courts, or go bankrupt. This decision will depend on you financial condition.
Answer Applies to: New Jersey
Victor Varga | Victor Varga
You may have a defense, as they are required to notify you of the repossession (after they take the car), and also give you written notice of where and when the auction date would be, so that you would be given the opportunity to also bid on the car. Ask them for all notices that they claim that they sent to you. If they cannot produce, then you don't have to pay, but don't just not pay or not call them. You will probably need a lawyer to help you.
Answer Applies to: Maryland
Law Office of D.L. Drain, P.A. | Diane L. Drain
This assumes you are an Arizona resident: A creditor has the right to receive the full amount of their debt. Unfortunately, it is very hard to predict what will be paid at the auction. You are responsible for the balance, plus all their costs. A bad debt stays on your credit report for 7 years. A bankruptcy for 10 years.
Answer Applies to: Arizona
Stone|Novasky, LLC | Robert Novasky
When you purchased your car, you probably signed a contract for payments. In all likelihood, the contract contained provisions that allowed the creditor to seek the deficiency from you if your car was repossessed and resold for less than the amount owing. You may want to review the documents you signed when you purchased the car to see if you can find that language. Assuming there is language to that effect in the contract, you are responsible for the deficiency between the sale amount and the amount that was owed on the contract.
Answer Applies to: Washington